San Luis Obispo Municipal Code Ch. 17.141 Downtown Flexible Density Program

The provisions in this chapter are intended to carry out a key program directed by the 2014 General Plan Land Use Element and the 2020 Housing Element to implement the downtown flexible density program. The program is intended to facilitate the construction of smaller housing units within the city’s downtown core by relaxing density limitations for qualifying units and providing development standard incentives. The program will be in effect until January 1, 2029, or until five hundred residential units have been entitled or permitted, whichever occurs first. (Ord. 1726 § 7, 2023)

The downtown flexible density program eliminates residential density requirements for units less than six hundred square feet in size. Projects that qualify under this chapter may be developed at a residential density that is greater than the base density for the zone in which the lot is located.

A. Location. The downtown flexible density program shall only be available to properties zoned C-D or C-R within the downtown core as shown in Figure 8-1 (Downtown Core).

B. Residential Units. The downtown flexible density program is limited to studio or one-bedroom units that are less than six hundred square feet; all other residential units six hundred square feet or larger shall conform to the standard density limitations of the underlying zone.

1. The provisions of this chapter shall not apply to projects that include a request for a density bonus in accordance with Section 17.140.040 (Standard incentives for housing projects). Standard density limitations shall apply to any project that includes a request for a density bonus, in accordance with Section 17.70.040(A)(1) (Density Calculation—General).

C. Qualifying units under the downtown flexible density program shall be prohibited from any activities associated with Section 17.86.160 (Homestay rentals).

Figure 8-1. Downtown Core

[Figure]

(Ord. 1726 § 7, 2023)

Applications submitted for review in accordance with this chapter shall conform to all applicable development standards of the underlying zone, including but not limited to height, setbacks, floor area ratios, and building lot coverage, unless otherwise stated in this chapter or prohibited by state law.

A. Residential Density. Residential units that are less than six hundred square feet in size and limited to a studio or one-bedroom configuration may exceed the base density for the zone in which the lot is located, in accordance with all provisions of this chapter. For the purposes of this program, qualifying units shall have a density unit value of 0.0, rather than the standard 0.5 density unit.

1. Standard density limitations shall apply to all residential units that are larger than six hundred square feet or include two or more bedrooms, in accordance with Section 17.70.040(A)(1) (Density Calculation—General).

B. Inclusionary Housing Exemption. Residential units less than six hundred square feet that are of a studio or one-bedroom configuration shall be exempt from inclusionary housing requirements, as described in Section 17.138.040 (Inclusionary housing requirements), subject to the following:

1. Commercial linkage fees shall apply (Chapter 4.60).

2. Residential units six hundred square feet or larger shall be subject to the standard inclusionary housing requirements (Chapter 17.138, Inclusionary Housing Requirements).

C. Parking Requirements. Vehicle parking requirements shall be required in accordance with Chapter 17.72 (Parking and Loading), except as otherwise provided below:

1. Minimum Parking Requirements. Qualifying units under the downtown flexible density program shall require a minimum parking rate of one-half as required in Table 3-4: Parking Requirements by Use. (Ord. 1726 § 7, 2023)

All new construction projects including additions or alterations to existing buildings that include new units that qualify under this chapter shall be subject to the city’s discretionary development review process, unless otherwise exempt, as outlined in Chapter 17.106 (Development Review). (Ord. 1726 § 7, 2023)

The downtown flexible density program shall have an initial duration consistent with the current housing element cycle and expire on January 1, 2029, or until five hundred new residential units are entitled or permitted under this program, whichever occurs first.

A. Exclusion of Affordable Housing Units. Housing units that are deed restricted as affordable to moderate-income or below households, as defined in the city’s below market rate housing standards, will not count towards the five-hundred-unit program limit.

B. Pending Applications. Any application for new development that is deemed complete prior to the expiration of the program term as established in this section may continue to be processed in accordance with this chapter. (Ord. 1726 § 7, 2023)